For many Nigerians in diaspora, the thought of returning home comes with mixed feelings. There is no place like home yet the place we call our home is inundated with several challenges. Security threats and absence of adequate infrastructure are just a few plaguing the country.
Currently, we are living in a heated and uncertain political atmosphere which has ignited justifiable fear in the minds of local residents and expatriates alike. All of these have caused many to adopt the saying: “home is where you make it,” and have pitched their tents comfortably abroad while observing the happenings, and sometimes, criticizing the ills in our dear country, Nigeria.
Notwithstanding the obvious challenges, it is unarguable that Nigeria is a country with huge potential. The aim of this article is to draw attention to the opportunities in Nigeria in spite of its problems. To understand Nigeria’s business equity dividend, it is important to take a closer look at critical statistics that underpin our economy.
The population of Nigeria, put at 173.6 million in 2013 represents 2.35 percent of the world's total population which arguably means that one person in every 43 people on the planet is a resident of Nigeria. 19.3 percent of the population is aged between 15 and 24 and another 30.5 percent aged 24 to 54. In 2014, national population estimated growth rate was recorded at 2.47 percent. The population in urban areas stood at 50.9% (2013), a figure that has grown by 3.8 percent between 2010 and 2015. With a land area of 910,768 sq km three years ago, the percentage of Nigeria’s agricultural area is an impressive 79.1%. Whilst in technology, Nigeria has Africa’s largest internet user population estimated to have been 70.3 million people in 2014.
From these figures and predicted growth in same areas, there are indications that the Agricultural sector and population density (especially, the youth population) present huge dividends which can certainly be tapped by anyone interested in doing business in Nigeria.
From these figures and predicted growth in same areas, there are indications that the Agricultural sector and population density (especially, the youth population) present huge dividends which can certainly be tapped by anyone interested in doing business in Nigeria.
Moreover, notable growth in the volume of internet users also suggests that e-commerce is expected to continue to be a good opportunity which can be harnessed by small and medium scale enterprises as well as large corporations. Sim Shagaya, CEO of Konga.com, recognized this opportunity and returned to Nigeria to start his company in 2012. Recently, Konga was rated one of the top online retail companies in Nigeria. To date, the company continues to experience significant gains in its growth trajectory.
A company which deals with commodity products that address the basic needs of food, shelter and clothing, offered at affordable prices and conveniently available to the dense population of a country is bound to succeed, all things being equal. A key success approach for a start-up company which intends to take advantage of population density is for it to compete on volume. The company should aim to offer its goods at reasonable prices but with easy reach to consumers. This will ultimately drive up volume of demand and revenue. Perhaps this explains why, South Africa’s giant telecommunications provider MTN and other rival companies have a wide range of denominations of telephone credit recharge cards readily available for sale. One can easily buy N100 worth in recharge value. Moreover, competition has forced these telecommunication companies to drop their call rates and invent new ideas of increasing the volume of their subscribers. Here are companies making billions of Naira in revenue year in, year out despite the operational setbacks an environment like Nigeria throws their way.
Nigerian Daily; Business Day of March 6, 2014 reported that MTN had made N793.6 billion in revenue in 2013 alone.
Profitability of the business is, however, dependent on various other factors which affect its cost. However, these are not the subject of this article.
Indeed, there are opportunities for Nigerians in the Diaspora to own start-up businesses or join established successful corporations in the country. It is, of note, essential to ensure that interested persons come with requisite skills, experience and social networks to navigate the turbulent terrain.
Nigerians – home and abroad – must begin to focus on the opportunities which lie within the nation’s challenges. According to Harry Truman, “a pessimist is one who makes difficulties of his opportunities and an optimist is one who makes opportunities of his difficulties”. We must therefore make consciously optimistic efforts by seizing the plethora of opportunities that our nation’s challenges present.
Profitability of the business is, however, dependent on various other factors which affect its cost. However, these are not the subject of this article.
Indeed, there are opportunities for Nigerians in the Diaspora to own start-up businesses or join established successful corporations in the country. It is, of note, essential to ensure that interested persons come with requisite skills, experience and social networks to navigate the turbulent terrain.
Nigerians – home and abroad – must begin to focus on the opportunities which lie within the nation’s challenges. According to Harry Truman, “a pessimist is one who makes difficulties of his opportunities and an optimist is one who makes opportunities of his difficulties”. We must therefore make consciously optimistic efforts by seizing the plethora of opportunities that our nation’s challenges present.
*Data sources: UN data, CIA.gov, World Bank, Internetworldstats.org
Source Diaspora Quarterly
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